Antigua and Barbuda

Location : Caribbean, islands between the Caribbean Sea and the North Atlantic Ocean, east-southeast of Puerto Rico 

Capital : St. John's

Languages : English (official), local dialects

Area : 442.6 sq km (Antigua 280 sq km; Barbuda 161 sq km)

Land Use : arable land: 18.18%; permanent crops: 4.55%; other: 77.27% (2001)

Population : 68,722 (July 2005 est.).

Labour force : 30,000

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, ISO (subscriber), ITU, OAS, OECS, OPANAL, UN, UNCTAD, UNESCO, UPU, WCL, WFTU, WHO, WIPO, WMO, WTO 

GDP per capita : U$11,000 (2002 est.) 

GDP Real Growth Rate : 3% (2002 est.)

GDP sectoral composition : agriculture: 3.9%; industry: 19.2%; services: 76.8% (2002)

Industries: tourism, construction, light manufacturing (clothing, alcohol, household appliances)

Industrial production growth rate : 6% (1997 est.) 

Agriculture - products : cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugarcane; livestock 

Exports : U$689 million (2002) 

Exports - commodities : petroleum products 48%, manufactures 23%, machinery and transport equipment 17%, food and live animals 4%, other 8%

Exports - partners : Germany 49.5%, UK 29.7%, France 3.5% (2004) 

Imports : U$692 million (2002 est.)  

Imports - commodities : food and live animals, machinery and transport equipment, manufactures, chemicals, oil

Imports - partners : US 21.8%, Singapore 18.8%, China 10.7%, Poland 6.7%, Trinidad and Tobago 4.6%, UK 4.4% (2004)

 QUALITATIVE TRADE PROFILE

The emphasis in Antigua and Barbuda 's trade policy has changed over time, from an inward-looking import-substitution regime to a more outward orientation in the last ten years. The authorities have stated that the cornerstone of Antigua and Barbuda's current development policy is the encouragement of local and foreign investment. With respect to its foreign trade strategy, the Government has identified the following areas for improvement: public sector reform; streamlining of bureaucratic procedures; a competition policy to regulate restrictive business practices in the domestic market; the development of international standards; and diversification of the economy from high dependence on tourism into other service activities. A broader policy goal is the accession of CARICOM to the Free Trade Areas of the Americas (FTAA), and completion of the CARICOM Single Market and Economy.

Antigua and Barbuda applies the Caribbean Community (CARICOM) Common External Tariff (CET). It has implemented Phase IV of the CET and therefore applies tariffs ranging from 0%-20% for non-agricultural goods and 0%-40% for agricultural goods. Antigua and Barbuda bound all agricultural and industrial lines during the Uruguay Round. Tariffs on non-agricultural products were bound at a uniform rate of 50%, with a number of exceptions, including motor vehicles. A customs service tax of 5% is charged on all goods imported into Antigua and Barbuda, including those from other CARICOM countries.

Antigua and Barbuda does not apply any seasonal tariffs or mixed or alternate duties. Antigua and Barbuda, like the other CARICOM members, maintains a List of Conditional Duty Exemptions to the CET, applying tariffs at rates below CET rates. The List also states the purposes for which the goods may be admitted into the importing Member State free of import duty or at a rate lower than the CET. These goods may be imported at lower duties for purposes, generally, of sectoral development, economic and social development, health and safety, public sector procurement, and culture and sports. However, some products may not benefit from these tariff concessions. These items, contained in the List of Items Ineligible for Duty Exemption, include goods produced in the Caribbean Common Market in quantities considered adequate to justify the application of tariff protection.

INSTITUTIONAL FRAMEWORK 

The International Trade Division of the Ministry of Foreign Affairs is responsible for the formulation and implementation of all trade-related policies. Policies formulated by technicians in the Ministry are reviewed by the Minister, returned to the technician for amendments, passed on to Cabinet for approval, and finally returned to the Ministry for

implementation. A number of proposals are passed on to the OECS Secretariat for comment. Under the Caribbean Community and Common Market (CARICOM) Agreement, it is expected that Antigua and Barbuda will coordinate all aspects of its trade policy, investment issues, and foreign affairs, with its CARICOM partners. Negotiation positions in particular are co-ordinated at the regional level through the Caribbean Regional Negotiating Machinery. There is a high level of external negotiation co-ordination. Greater coordination is envisaged as the CARICOM Single Market and Economy (CSME) becomes operational.

Other ministries involved in the trade policy process are; the Ministry of Planning, Trade, Industry, Commerce and Public Service Affairs which overseas all aspects related to domestic commerce; the Ministry of Finance and Planning which has responsibility for tariff policy; Ministry of Agriculture, Lands and Fisheries; Ministry of Justice and Legal Affairs is in charge of drafting domestic legislation and amendments; the Office of Patents, Copyrights, and Intellectual Property; The Bureau of Standards The National Council for International Trade Policy Coordination (Trade Council) is responsible for policy co-ordination among the various ministries and in addition incorporates the private sector into the trade policy process.

TRADE AGREEMENTS

Bilateral

Antigua and Barbuda 's products are eligible for the Generalized System of Preferences (GSP) schemes of Australia, Bulgaria, Canada, the Czech Republic, the European Union, Hungary, Japan, New Zealand, Norway, Poland, Russia, the Slovak Republic, and Switzerland.. The Caribbean Basin Initiative provides for duty-free access to the U.S. market for a range of Antigua and Barbuda's exports. Exports from Antigua and Barbuda also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Antigua and Barbuda is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR. Through CARICOM, Antigua also has bilateral trade deals with Cuba, Colombia, Costa Rica, Dominican Republic and Venezuela.

Regional

Antigua and Barbuda is a full member of the Caribbean Community (CARICOM) and the Organisation of Eastern Caribbean States (OECS). Through the latter it is a part of a fully established monetary union with the other states of the Eastern Caribbean. Antigua and Barbuda is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also negotiating as a bloc with CARICOM to form the hemispheric Free Trade Area of the Americas.

Multilateral

Antigua and Barbuda is a founding WTO Member and applies at least MFN treatment to all its trading partners. It has GATS commitments in 32 sectors.  

NEED PRIORITIES  

Specific areas of need are: the research and analysis of trade obligations and commitments (WTO and EPA) and assess their impact on the economy; analyse changes required for the implementation of Uruguay Round commitments; reform and modernise legal regime with a view to incorporating trade obligations; developing strategies for capacity-building of the private sector; assessing impact of intellectual property rights commitments on the domestic economy; developing strategy for implementation of tariff commitments.

Source: Commonwealth Yearbook, World Fact Book, WTO Secretariat.